Russia reaches deal to host F1 Grand Prix in 2014

Russian Prime Minister Vladimir Putin, right, and Formula One chief Bernie Ecclestone, left, shake hands during their meeting in the Black Sea resort of Sochi, southern Russia, Thursday, Oct. 14, 2010. Ecclestone signed a contract with Russian officials giving Sochi the right to host Grand Prix from 2014, the same year the city hosts the Winter Olympics. (AP Photo/Mikhail Metzel)
— AP

Russian Prime Minister Vladimir Putin, right, and Formula One chief Bernie Ecclestone, left, shake hands during their meeting in the Black Sea resort of Sochi, southern Russia, Thursday, Oct. 14, 2010. Ecclestone signed a contract with Russian officials giving Sochi the right to host Grand Prix from 2014, the same year the city hosts the Winter Olympics. (AP Photo/Mikhail Metzel)
/ AP

Russian Prime Minister Vladimir Putin, right, and Formula One chief Bernie Ecclestone, left, seen after signing ceremony in the Black Sea resort of Sochi, southern Russia, Thursday, Oct. 14, 2010. Ecclestone signed a contract with Russian officials giving Sochi the right to host Grand Prix from 2014, the same year the city hosts the Winter Olympics. (AP Photo/Mikhail Metzel)— AP

Russian Prime Minister Vladimir Putin, right, and Formula One chief Bernie Ecclestone, left, seen after signing ceremony in the Black Sea resort of Sochi, southern Russia, Thursday, Oct. 14, 2010. Ecclestone signed a contract with Russian officials giving Sochi the right to host Grand Prix from 2014, the same year the city hosts the Winter Olympics. (AP Photo/Mikhail Metzel)
/ AP

SOCHI, Russia 
Russia signed a deal with Formula One that will allow the nation to host a Grand Prix race near the Black Sea resort of Sochi starting in 2014.

Formula One chief Bernie Ecclestone and a regional Russian construction official signed the deal Thursday in Sochi, which is also hosting the 2014 Winter Olympics. Russia's Prime Minister Vladimir Putin met with Ecclestone and attended the signing.

Russia has strived to get on the F1 circuit before, but former Moscow Mayor Yuri Luzhkov failed to reach an agreement with Ecclestone in 2002 to use the capital as a venue.

The deal is thought to cost Russia at least $40 million per year for five years, including an option to extend for another five.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

SOCHI, Russia (AP) - Prime Minister Vladimir Putin says Russia has reached a deal with Formula One to host a Grand Prix race near the Black Sea resort of Sochi beginning in 2014.

Putin made the statement before meeting Formula One chief Bernie Ecclestone in Sochi, which is also hosting the 2014 Winter Olympics. Ecclestone and Russian officials plans to sign the deal later Thursday.

Russia has tried to get on the F1 circuit before, but former Moscow Mayor Yuri Luzhkov failed to reach an agreement with Ecclestone in 2002 to use the city as a venue.

The deal is believed to come at a cost to the Russians of at least $40 million per year for five years, including an option to extend for another five.